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Ukraine's Yanukovich says deals with China may bring $8 bln investments-Ifax

Source: Reuters - Thu, 5 Dec 2013 12:34 PM
Author: Reuters
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KIEV, Dec 5 (Reuters) - Deals signed on Thursday with China may bring Ukraine about $8 billion in investments, Ukrainian President Viktor Yanukovich said, according to Interfax news agency reporting from Beijing.

"The documents signed by us today are broadening economic cooperation. We have not yet calculated what the equivalent in money will be. But earlier we reckoned that we are talking about approximately eight billion dollars of investment into the economy", he said in comments in Beijing.

The presidential website said the projects included aircraft and shipbuilding, agriculture, energy and road construction.

The agriculture agreement appeared to relate to supplying Ukrainian soybean and barley to the Chinese market - a project in the pipeline. Ukraine also wants to supply wheat and maize to the Chinese market.

Ukraine faces huge problems in financing an unwieldy current account deficit, with outside funding needs estimated at $17 billion next year to meet debt repayments and the cost of imported natural gas.

A decision to step back from a trade pact with the European Union and revive economic relations with Russia have sparked widespread protests in the capital.

One analyst, Timothy Ash of Standard Bank, doubted that the agreements signed in China would have a significant impact on the distressed economy.

"Ukraine needs short term cash/financing, and likely in the order of $10-15 billion at this stage in up front cash to make a difference," he said. (Writing By Richard Balmforth; Editing by Jon Boyle)

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